Posts Tagged ‘Carlos Uresti’

Arrest Uresti

Tuesday, May 16th, 2017

Democratic State Senator Carlos Uresti’s offices were raided by the FBI and IRS in February. Today, the other shoe finally dropped:

A federal grand jury has indicted Texas state Sen. Carlos Uresti, D-San Antonio, on charges of conspiracy to commit wire fraud, conspiracy to commit bribery, conspiracy to commit money laundering, and two counts of securities fraud, among other charges, the U.S. Department of Justice announced Tuesday.

There were 13 charges in all, stemming from two separate corruption cases:

The Four Winds indictment

Uresti served as general counsel in 2014 for the now-defunct San Antonio company Four Winds Logistics. Investors have claimed that company CEO Stan Bates wasted their money on personal expenses and vacations, and the investigation has so far led to at least three guilty pleas from officials at Four Winds.

The grand jury also indicted Bates and Four Winds consultant Gary L. Cain, federal investigators said.

Bates founded the company to trade “frac sand,” which is used in hydraulic fracturing to extract oil and gas from shale rock. Documents filed months ago that outline the investigation claim that company officials in 2014 wired money from the company to personal bank accounts controlled by conspirators or their spouses; sent altered bank statements for the Four Winds’ general operating account to potential investors; and emailed an investor a spreadsheet that falsely showed the investor’s investment was used to buy fracking sands.

“The indictment alleges that the defendants’ scheme developed an investment Ponzi to market hydraulic fracturing (a.k.a. fracking) sand for oil production,” federal officials said in their statement Tuesday. “It further alleges that the defendants made false statements and representations to solicit investors in Four Winds. The defendants allegedly used funds from more recent investors to pay earlier investors and for personal expenses.”

Uresti, Bates and Cain face the following charges in this indictment:

  • Uresti: One count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, five substantive counts of wire fraud, two counts of securities fraud, one count of engaging in monetary transactions with property derived from specified unlawful activity, and one count of being an unregistered securities broker.
  • Bates: One count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, one count of wire fraud, two counts of securities fraud, and three counts of engaging in monetary transactions with property derived from specified unlawful activity.
  • Cain: One count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and seven counts of engaging in monetary transactions with property derived from specified unlawful activity.
  • Uresti would face up to 20 years in prison if convicted of being an unregistered securities broker. Additionally, each man could face up to 20 years in prison for each fraud charge and up to 10 years in prison for each money laundering charge.

    The Reeves County indictment

    This indictment alleges that, from January 2006 to September 2016, Uresti and Vernon C. Farthing III, of Lubbock, conspired with others to pay and accept bribes in order to secure a Reeves County Correctional Center medical services contract for Farthing’s company, federal officials said.

    The indictment specifically alleges that Farthing paid Uresti $10,000 a month as a marketing consultant and that half of that sum was then given to a Reeves County official for his support and vote to award the contract to Farthing’s company, federal officials said.

    Uresti and Farthing face the following charges in this indictment:

  • Uresti: One count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.
  • Farthing: One count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.
  • If convicted of both charges, both men would each face up to 25 years in prison.

    (Hat tip: Dwight.)

    The post title is mainly there for the alliteration, as Uresti is expected to appear before U.S. Magistrate Judge Henry Bemporad at 11 AM in San Antonio.

    Democratic State Senator Carlos Uresti’s Offices Raided by FBI, IRS

    Thursday, February 16th, 2017

    Via Dwight comes word that the offices of Democratic State Senator Carlos Uresti have been raided by the FBI and the IRS:

    Agents have been confiscating documents from the office of the Democratic lawmaker.

    “I can confirm the FBI and IRS are lawfully present and conducting a lawful law enforcement activity,” FBI spokeswoman Michelle Lee told the Express-News.

    Lee also said no arrests have been made so far.

    Uresti is currently facing a grand jury investigation into possible public corruption charges related to his involvement with FourWinds, a San Antonio oil-field services company accused of defrauding investors.

    While Uresti is “innocent until proven guilty,” having both the FBI and IRS lawfully conducting lawful law enforcement in your office is not a good sign.

    When last we checked on Sen. Uresti, he was sharing a bathroom with a female staffer not his wife and involved in the UT admissions scandal.

    Here’s more on the FourWinds story, which I had not been previously following:

    The one-time marketing director for a bankrupt San Antonio frac-sand company with ties to state Sen. Carlos Uresti has been criminally charged in an alleged scheme to defraud investors.

    On Wednesday, Eric Nelson was charged in an information with conspiracy to commit wire fraud for allegedly altering a FourWinds Logistics’ bank statement to inflate the amount of money in the account. The bank statement was then mailed by an unnamed co-conspirator to prospective investors, according to the charging document.

    Nelson has agreed to a plea deal, according to sources, but records show that it is sealed. His attorneys declined to comment.

    The San Antonio Express-News in August chronicled the demise of FourWinds, which had more than $14 million in claims against it. Investors have alleged that CEO Stan Bates wasted their money on personal expenses, expensive gifts, exotic car rentals and lavish vacation, according to a court document. Bates has denied the allegations.

    Uresti provided legal services for FourWinds and served as its outside general counsel for four or five months in 2014, he said in an interview this summer. He received FourWinds shares, as well as a $40,000 loan from the company that he failed to disclose initially. He also collected a $27,000 commission on a Harlingen woman’s $900,000 investment in a joint venture with FourWinds. The woman ended up losing about $800,000.

    Really, who of us hasn’t forgotten a $40,000 loan? “Oh yeah! That little thing! Sorry, totally slipped my mind!”

    Uncle Sam’s mills grind slowly, but exceedingly fine. One way or another, I suspect Republicans will view Uresti’s west Texas District 19 as a pickup target in 2020…if not sooner…

    This Week in Democratic Party Corruption

    Wednesday, December 2nd, 2015

    It’s been a big week for Democratic Party corruption.

    First, Democratic Speaker of New York’s Sheldon Silver was convicted of all the corruption charges against him:

    “The Democratic speaker of the state Assembly for more than 20 years, Mr. Silver was found guilty by a 12-person federal jury in Manhattan of four counts of honest-services fraud, two counts of extortion and one count of money laundering.”

    More on Silver from Steve Malanga of City Journal:

    For years, New York State has ranked among the most litigation-friendly places in America. (Those unlucky enough to get caught up in the state’s civil justice system call it “Sue” York.) Lawsuit reform has bypassed New York largely because one of the state’s most powerful politicians, former assembly speaker Sheldon Silver, was himself a plaintiff’s attorney who benefited from the system he helped create. Over the years, Silver not only blocked attempts to change unique features of New York’s civil justice system, but he also appointed other trial lawyers to key legislative positions, including on the crucial Assembly Judiciary Committee. So it’s not shocking that when Silver himself finally fell from grace, the case revolved around state grants Silver arranged to a cancer researcher, who then referred mesothelioma patients back to the former speaker’s law firm so that they could become clients in the lucrative asbestos-litigation business.

    Snip.

    Silver thought the people’s money was his money. For years, he helped lead a regime in which legislators from both parties received millions of dollars to distribute as “earmarks”—money handed out directly by elected officials to favored organizations outside of the state’s regular contracting or granting process. The New York Times dubbed Silver the “king of earmarks” because he used them as a way of exercising power over members of his political caucus. In doing so, Silver was accountable to no one. He handed out millions of dollars of state money, for instance, to the Metropolitan Council on Jewish Poverty, an organization run by William Rapfogel, the husband of Silver’s longtime chief of staff. Judy Rapfogel sat in on meetings about funding for her husband’s group, according to press accounts. In 2013, William pled guilty to stealing some $3 million over a nearly 20-year period from the largely government-funded Met Council. He served 14 months of a 3- to 10-year sentence in an upstate prison and recently entered a supervised work-release program.

    In New York, the earmark process is so corrupt that politicians can create their own nonprofits and then finance them with taxpayer money—a remarkably blatant display of conflict-of-interest.

    Meanwhile, in Rahm Emmanual’s Chicago:

    THERE’S been a cover-up in Chicago. The city’s leaders have now brought charges against a police officer, Jason Van Dyke, for the first-degree murder of 17-year-old Laquan McDonald. But for more than a year, Chicago officials delayed the criminal process, and might well have postponed prosecution indefinitely, had it not been for a state court forcing their hand.

    They prevented the public from viewing crucial incriminating evidence — first one police car’s dashboard camera video; now, we learn, five such videos in total. And these senior officials turned a blind eye to the fact that 86 minutes of other video surveillance footage of the crime scene was unaccountably missing.

    Snip.

    The video of a police shooting like this in Chicago could have buried Mr. Emanuel’s chances for re-election. And it would likely have ended the career of the police superintendent, Garry F. McCarthy.

    And so the wheels of justice virtually ground to a halt. Mayor Emanuel refused to make the dash-cam video public, going to court to prevent its release. The city argued that releasing the video would taint the investigation of the case, but even the attorney general of Illinois urged the city to make it available.

    Then the city waited until April 15 — one week after Mr. Emanuel was re-elected — to get final approval of a pre-emptive $5 million settlement with Mr. McDonald’s family, a settlement that had been substantially agreed upon weeks earlier. Still, the city’s lawyers made sure to include a clause that kept the dash-cam video confidential.

    Compared to those scandals, allegations of garden variety marital infidelity with a lobbyist by Texas Democratic State Senator Carlos Uresti is relatively small peanuts… (Hat tip: Push Junction.)

    LinkSwarm for September 22, 2014

    Monday, September 22nd, 2014

    A Monday LinkSwarm of some recent(ish) news:

  • Surprise, surprise, surprise: ObamaCare covers abortions.
  • Alaska doctor shuts down practice due to ObamaCare.
  • Obama’s own Secretary of Defense says we left Iraq too soon.
  • Strangely enough, Gaza landlords are no longer wild about renting to Hamas.
  • Another day, another 36 people killed by Boko Haram in Nigeria.
  • “A Pakistani academic known for promoting liberal views on Islam has been shot dead by gunmen.” And people wonder why we don’t hear from more moderate Muslims…
  • The progressive media consensus on Islam is stultifying, and deliberately so. It’s a series of simplistic claims intended to drown out any adult discussion on the issue in favor of childish happy-talk which serves no purpose except to preserve the fragile progressive voting coalition.”
  • How well is the war against ISIS going? David Gergen compares it to the rollout of ObamaCare.
  • Meanwhile, ISIS continues to advance in Syria.
  • “The ‘social justice warriors are only happy when they’re destroying someone. That’s because they’re awful people with mental and emotional issues.”
  • Are you a whistle-blower who has spoken truth to power? Then expect to be investigated by the media, if the power you spoke truth to has a (D) after their name…
  • Global warming has been missing for 19 years.
  • Fareed Zakaria: Plagiarist. (Via Instapundit.)
  • Mary Burke: Plagiarist. (Also via Instapundit.)
  • C. David Heymann: Serial Liar. (Hat tip: Dwight.
  • Federal Reserve makes a $7 Trillion (with a T) cut-and-paste error. I would think that when you’re dealing with trillions of dollars, you’d want to have additional auditors checking your math. Silly me…
  • With antisemitism on the rise, Jews decide that Glocks go with lox.
  • The college rape “epidemic” is complete bunk.
  • Last year: Socialist Party Vice Presidential candidate. This year: Texas Democratic Party state House candidate.
  • Wallace Hall update: Remember how Rep. Dan Flynn was part of the “impeach Hall” committee? Guess what?

    Flynn, however, is one of the lawmakers who tried to pull strings for a family friend, and never disclosed that fact throughout his yearlong investigation, even as the question of legislative influence became the subject of two official investigations and independent media investigations, and ultimately led to the forced resignation of the university’s president, Bill Powers.

    Flynn wrote a letter to Chancellor Francisco Cigarroa on behalf of a family friend who was applying to UT; the name of the applicant and the letter’s date are redacted on a copy of the letter that was published Thursday by the Texas Tribune.

    The Texas Tribune published 112 pages of correspondence with Cigarroa’s office involving letters of recommendation; five of those letters were from state legislators: Reps. Flynn, Tryon Lewis and Brandon Creighton, and Sens. Carlos Uresti and Mario Gallegos.

    (Hat tip: Push Junction)

  • S. T. Joshi on why replacing H. P. Lovecraft’ visage on the World Fantasy Award statuette (an idea pushed by the usual radical feminist Social Justice Warriors) is a bad idea. Keep scrolling, there’s a lot of slagging of a very foolish idea at a very high level of diction…
  • Feminism is about women’s equality. Period. It’s not about capitalism or socialism or racism.” Well, first wave feminism, anyway…
  • Dripping Springs ISD administrators have decided that the children in their charges are the perfect laboratory for social justice engineering via “Meatless Mondays.”
  • We just passed the 40 year anniversary of Evel Knievel’s Snake River Canyon jump. Kids: Ask your parents what an “Evel Knievel” was. Or, urm, your grandparents. And get the hell off my lawn!
  • Austin wants to spend $1 billion to extend their toy trains. Citizens Against Rail Taxes explain why that’s a bad idea.